UBS Lowers CHALCO Target Price to HK$17.5, Citing In-Line Earnings but Lower Dividend

Stock News03-30

UBS released a research report noting that CHALCO's net profit attributable to shareholders for the 2025 fiscal year reached RMB 12.7 billion, marking a 2% year-on-year increase, which aligned with the bank's expectations. The report indicated that the market had already anticipated potential significant impairment losses in the last quarter of the previous year, hence the results did not come as a surprise. The company announced a dividend of RMB 0.147 per share for the second half of the 2025 fiscal year, with a payout ratio of 45%. Combined with the dividend from the first half, the full-year dividend amounted to RMB 0.27 per share, resulting in an annual payout ratio of 36.5% and a dividend yield of 2.8%. This fell short of the market's expectation for a 40% payout ratio. Taking into account the 2025 fiscal year performance and making minor adjustments to its forecasts, UBS revised the target price downward from HK$17.6 to HK$17.5, while maintaining a "Buy" rating.

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